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2011 (5) TMI 894 - AT - Income TaxAppeal against the disallowance made by the Assessing Officer Section 040(a)(ia) - HELD THAT:- it has been submitted before us by the learned AR that the commission agent has raised separate bills for reimbursement of the expenses. With all these facts, when we consider the Board Circular, which cannot be made applicable to the present case because, there is no composite bill raised by the commission agent and as per the learned AR of the assessee, since bills for reimbursement of expenditure have been raised by the commission agent separately, TDS was not required to be deducted from such reimbursement of expenses and as a consequence, Section 40(a)(ia) is not applicable with regard to such payments. the Tribunal decisions cited by the learned AR of the assessee rendered in the case of Modicon Network P. Ltd. [2007 (2) TMI 354 - ITAT DELHI] and Grandprix Fab P. Ltd.[2009 (10) TMI 74 - ITAT DELHI-D] also support the case of the assessee and hence, by following all the Tribunal decisions, we hold that no TDS is required to be deducted for reimbursement of expenses for which separate bills were raised by the commission agent and hence, the provisions of Section 40(a)(ia) is not applicable to such payments. Therefore, disallowance made by the Assessing Officer is to be deleted. In result, assessee’s appeal is allowed.
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